Nigerian Government Urged to Clarify Crypto Stance and Resolve Licensing Hurdles – Flincap's Co-Founder
Summary:
Flincap's Co-Founder, Nathaniel Luz, calls for more clarity from the Nigerian government on its stance towards the crypto industry. He disputes the government's claim that over-the-counter crypto traders are to blame for the country's faltering economy and weakened naira currency, arguing that other key issues are at fault. Luz also voices his concern over the ongoing difficulties faced by startups in obtaining licenses for crypto trading in Nigeria, urging the government to solve this issue rather than blaming the local crypto industry for its forex troubles.
Flincap's Co-Founder and CMO, Nathaniel Luz, has called on the Nigerian government to clarify its position on the crypto industry, citing their recent, confusing actions. Following recent reports of many local crypto users being unable to connect to various crypto exchange sites – such as Binance and OctaFX – via traditional telecom providers, many have speculated that the government could be implementing a crypto platform ban. Luz expressed his concern that the government does not seem intent on fostering a positive rapport with those dealing in cryptocurrency.
He challenged the claim that P2P market-based OTC traders exchanging USDT for naira are at fault for the current exchange rate of 1,800 naira to $1. Luz staunchly stated that blaming OTC traders is a false accusation, and the crypto industry is not responsible for the economic strife or the depreciation of the naira. He argued that other unrelated issues such as the excess of naira, the lack of dollars, heavy import reliance, citizens emigrating and exchanging currency, and uncertainties regarding Eurobond payments have led to the devaluation of the naira.
The Nigerian government's decision to lift the 2021 crypto ban, previously established by the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN), offered a supportive stance for the industry. This action was expected to pave the way for cryptocurrency exchanges to acquire licenses to trade in the country. However, numerous startups are still trying to meet the criteria for the license, requiring them to have $340,343 (500 million naira) in paid-up capital and pay an application fee of $20,420 (30 million naira).
Luz urged the government to address this licensing challenge instead of holding the local crypto market at fault for its forex problems. Nigeria, being the largest P2P market worldwide, had arisen from the CBN's 2021 prohibition on institutions from trading cryptocurrencies.
Published At
2/24/2024 2:20:06 PM
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